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tv   Markets Now  FOX Business  December 7, 2012 11:00am-1:00pm EST

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>> i am an optimist. stuart: great stuff. thank you. dagen and connell, it is yours. connell: good morning. dagen: get to work. 146,000 jobs were created in november. more than expected. while more and an entire generation is being lost in this entire thing. connell: it will not be paid until the end of the year. we will talk about how it benefits the company, but not necessarily the employee. dagen: resident gasman, top closer says gas up and out over
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the holidays and enjoy the lowest prices of the year. top of the hour, everybody. nicole petallides on the floor of the new york stock exchange. nicole: would we got our jobs numbers, we saw the futures go from negative territory into positive territory. we aren't out of 33 points on the dow jones industrial. the nasdaq is lower. connell: there were 146,000 jobs added in the month of november. breaking news from washington. the speaker of the house john boehner. let's listen in. >> the tax hikes that the president campaigned on, that
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had more stimulus spending then cuts. and indefinite, infinite increase on the debt limit forever. four days ago, we offered a serious proposal based on testimony of president clinton's former chief of staff. since then, there has been no counter offer from the white house. reports indicate that the president has adopted a strategy to slow walk our economy right to the edge of the fiscal cliff. instead of reforming the tax code, the president wants to raise tax rates. even if the president that the tax rate hike that he wanted, understand that we will continue to see trillion dollar deficits for as far as the eye can see. washington has a spending3 problem, not a revenue problem.
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if the president does not agree with our proposal, i believe he has an obligation to families and small businesses to offer a plan of his own. we are ready and eager to talk to the president about such plan. >> you did speak with the president earlier this week, can you characterize that call. also, it has to be increases in rates for the wealthy or no deal. >> the phone call was pleasant, but more of the same. it is time for the president to be serious and come back with a counter offer. [inaudible question]
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>> the risk the president wants us to take, increasing tax rates will hit many small businesses that produce 60-70% of the new jobs in our country. that is the whole issue. [inaudible question] >> i think that is reckless talk. [inaudible question] >> listen, raising taxes on small businesses will not help our economy and will not help those seeking work. i came out the day after the election to put revenues on the
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table. to take a step towards the president to try to resolve this. >> is there someone you could agree to tax rate increases and protect small businesses may be at the same time? >> there are a lot of things that are possible. the president insists on this position. insist on my way or the highway. next. connell: speaker of the house john boehner. dagen: i think ed henry says no progress and charges at the white house. connell: there is the optimism.
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it has been waning anyway on the stock market. the speaker talk to you about the phone call about the president needing to get more serious. we will talk more about that coming up. mark warner is supposed to join us from capitol hill later this hour. right now, back to the morning jobs report. 146,000 jobs added in november. the unemployment rate fell to 7.7%. both were better than expected. the thing we will focus on is the big story behind all of this. maybe the fact that a generation of americans are being impacted by the lack of a full-time job. paul conway is the former chief of staff at the labor department. this is a wider point. we talk so much about the
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pairing of expectations versus the report. >> the numbers came out today at 7.7%. the story underneath this is the most important one. this is america. what we celebrate is the creation of more opportunities. this is not a good thing. this is not how we measure progress. you have over 9 million americans who are under employed. they are in jobs that do not match their skills or education. for these americans, they have to be unemployed americans, you
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have an entire generation moving to the workforce right now that are not doing the key things they need to do. managing projects, managing budgets, managing people in order to get more income throughout their career. connell: they are educated. they are overeducated. one of the things he talk about all the time is we have to have our education system came and keep up with the world. what are you afraid of? >> my biggest concern, here we are in the holiday season, and there is a personal side on this, every single one of these numbers represent an individual that is trying very hard.
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the problem here is a long-term thing. if you cannot take that intellectual capital and put it to work for america and for america's principles, you are looking at a country that is at a disadvantage. connell: give us an idea of what you think we should be doing that we are not? >> i think one of the quick fixes is simply stepping back on a day like this when people are finding out, hill about the fiscal cliff and understand at a personal level what is going on. for the president and congress to create more jobs. more full-time meaningful jobs. letting people pursue their dreams to achieve an income so they can get married and have families. do whatever they want.
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not penalizing the very people who have the courage and resources to create the jobs. the government will never create the number of jobs needed to put america back to work. connell: paul conway, thank you. appreciate you coming on. dagen: scott bloch is joining us now from boston. you look at the nasdaq and the broad market measured by the s&p 500 last year. double-digit gains by both. is that not wanted? >> well, it is. multiples are cheap. even if we look today on yesterday's close. the problems are the corporate earnings really starting to head down. the latest reported s&p earnings were down. that is the first drop since the bottom of the 08 market. truthfully, some of the estimates for next year, $113 on the s&p.
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i do not see a lot of growth in earnings next year. it does not bode well. it is hard to be very bullish on the market as a whole. dagen: that he's starts to shrink and stocks all of a sudden look a lot more expensive. are you most concerned about what is happening here in the united states or what you see going on over in europe? what about here and our lack of action in washington? >> obviously, i am very concerned. it shows a lack of confidence for investors.
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get behind closed doors in a serious way. it is ridiculous that the grover norquist pledge is taken by people we need to raise revenue. the president has to lead and not follow from behind on cutting the growth in entitlements. when people say we are going to cut spending, no, we are going to cut the growth of spending. medicare, medicaid, social security and other discretionary things in the budget. the gap is too wide. other people have pointed out we need revenue at 18.5% of gdp. we need expenditures at 21%. another point that i would like to make is the consumer has pretty much tapped out. if you look at nominal gdp it was up in the last quarter, personal income is only up 3%. that is a bad sign people are
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just saving and in solving credit is going back up. installment credit is up 11.7% year over year. a lot of these factors do not bode well. dagen: thank you for shaking me up this morning, scott. it was great to see you, as always. terrific insight. scott bloch. >> thank you very much. connell: we will show you what it means for companies and whether others will follow suit. dagen: he is one of the gang of eight. mark warner from the very fine state of virginia. what the house speaker just had to say. we will talk with tom kloza about gas prices.
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>> i am nicole petallides live on the floor of the new york stock exchange. it is stocks now. taking a look at some stocks that are on the move.
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taking a look at smith & wesson. a new 52 week high. let's take a look at how the stock is faring right now. it pulled back. it hit a new 52 week high. they also came out with their fiscal second-quarter profit. they raised their 2013 earnings forecast. we have seen a lot of demand for handguns. connell: thank you. dagen: mark warner is here to weigh in. connell: especially after what the speaker just had to say. then, tom kloza is coming up on gas prices. they will not be any better than they are right now. we will get to that. first, let's get to currencies. see how everyone is faring against the dollar. we will be right back. ♪
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>> @22 minutes past the hour, i have your fox news minutes. no problems have been detected
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at nuclear plants near the epicenter of that 7.3 magnitude earthquake that rocked the country today. it triggered a 1 meter tsunami, but there is no risk of a wide spread tsunami. protest still raging in egypt. protest turned deadly there. late yesterday a -- he refused to send his controversial to agree. venezuelan president sina public for the first time in nearly one month. the controversial leader arrived at an airport after traveling to cuba for radical treatment. chavez has spent the past few months fighting pelvic cancer. he claims he is now cancer free. connell: we continue our coverage of this morning's better than expected jobs
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report. we have mark warner joining us now. we just heard from the speaker. that raises a few questions. give me your impression of this, better than expected jobs report. what was your view with back well, i think we are seeing an economy that wants to recover. you know, i think we still have a lot of capital spending on the sidelines. it is why it drives me crazy that the figure is holding back the economy more than anything is, frankly, those of the congress not getting rid of the uncertainty around the fiscal cliff. think about what we are doing with retail sales right now with the christmas season. the most important part of the whole year. people are holding back because they do not know what will happen with their tax rates. as soon as we can get a deal
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done, frankly, a $4 trillion deal over ten years would do more for job growth, quite honestly, for then anything governor romney or president obama talked about during the campaign. connell: you are really the leader of this. the gang of six and morphed into a bigger group. do you feel as involved now or are you somehow kind of saying to yourself, boy, i do not have a say at all anymore. >> is it that obvious on my face? it is pretty darn frustrating. i have spent two and a half years. there is a large overwhelming majority ready to do their part. i have been in a lot of negotiations over my business career. too many cooks in the kitchen making this. i can tell you this much, there is an awful lot of us who are
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willing to vote and give ideas to an idea that is big and broad. connell: revenue. we heard from the speaker a moment ago. it did not sound very encouraging. on revenue, you guys were where, just in terms of numbers on revenue? >> well, connell, here is where you listen with eyes glazed over, you assume that the top rates would go up and we would be able to do tax reform to come back down. we started with a topline taxing number of 39%. we had about $2 trillion in debt new revenue. that drove us to a much larger number of entitlement reforms and spending cuts than anything else that has been proposed. there is a relationship here. connell: is there any way in this current, you know, environment to get close to
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where you guys were talking about without raising rates? >> it does not have to happen. i think it is the easiest way to guarantee that you'll get some additional reveeue. that does not mean once you drive the rates back up -- we are actually able to bring the top rates down to the high 20s. i think that is probably more aggressive than where we will go. it all depends on where you start your baseline. one of the things that is also important is. the more revenue we get, it also means more entitlement cuts and spending which means the bigger the deal, the better it is. connell: give me an odds, you
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are pretty optimistic? >> i think it is an 80% chance we avoid the cliff. but, do we avoid the cliff with a real deal or not? connell: senator warner, thanks a lot. dagen: i know the senator was that did what i have to say, go redskins. he has been terrific. one good thing to come out of d.c. calico weapons may be the last straw. we talked to you about the latest in syria. connell: 401(k) matches on employees. could that spread to other companies. we will talk about that coming up. as we continue here, the markets hanging onto gains. the jobs report was better than expected. here are some of the winners on the s&p 500. ♪ [ male announcer ] this is the age of knowing what you're made of.
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viagra. talk to your doctor. connell: back to the stock exchange. local pet that has a loser for us. nicole: we are looking at harry winston diamond. they came out with quarterly numbers. here is a look at the stock. it is down 2.5% at the moment. we are getting comments from their call as well.
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earnings did miss analyst expectations. it is a loss of $0.37. let's talk about the major market averages. a lot of green today. dow jones industrials to the upside. back to you. dagen: some movement on the diplomatic front in syria. raising the hope they could be close to a compromise on how to deal with all the violence in that country. syria preparing to use chemical weapons. judith miller joins us now to talk more about all of this. will they make progress, diplomatically? >> directions are really important in this. he must be persuaded. using chemical weapons against his own people is simply unacceptable, even by russian and chinese standards.
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dagen: how close? >> we do not have a sense. first of all, we know there is a large arsenal of 40 different locations. it would take approximately 1500 soldiers to secure. assad must understand that even though others have used these weapons in the past, for example, the iraqis, using them against his own people would constitute a war crime and he would not survive. his entire regime would not survive. connell: there is a higher likelihood that chemical weapons would be used, then, what would the united states do? people in this country are wary, how does the united states handle it?
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>> what we are seeing is people moving chemical precursors to gather to assemble. the administration has been very closed mouthed about whether or not they have been loaded. what would happen is they would have to know that the administration would be organizing an international coalition to actually go into the country. they do not want to do this. the administration always prefers to lead from behind. there is simply no other country back and organize the kind of international response that libya needed to deal with the chemical use against the syrian people, except the united states. we have hillary clinton going off to morocco to hang out with the friends of syria.
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it does not do any good at this point to kind of taut and organize the rebels. it is too late. we now need to prepare for the collapse of the regime. something that signals a total game change which is where we are right now. dagen: judith, thank you so much. a developing story. connell: the state of california is going after delta airlines. it is all because of its mobile app. dagen: they are not following the rules when it comes to privacy. shibani joshi has more. shibani: you would imagine that legal trouble could not be that far away. here it is. it is fitting that the airlines are directly, the california state attorney general is suing
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delta airlines. this is a first time that we have seen the state take some legal action against companies and their apps. the information that delta does compile for you when you sign up for its app you give information such as your date of birth, your home address credit card data as well as geo- location data. arguably, you would want all of this to be safe. there are question marks surrounding that. the attorney general says user of the flight delta application do not know what is personally identifiable. how does that uses information or to whom the information is shared, disclosed or sold.
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remember, i think i just lost the report here. dagen: what did peter barnes callas clicks back. dagen: thank you, shibani. today marks the 71st anniversary of pearl harbor. thousands of people are gathering at the memorial. the ceremony will begin with a moment of silence at 7:55 a.m.
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local time. the exact time of the bombing. incredible day. always important to remember. connell: ibm holding back on the 401(k) match. will others follow suit. dagen: gas prices. get them while they are not hot. a record year for prices, but a low over the holidays. tom kloza will tell you more and about the coming year. take a look at the treasury market. 1.62% on the ten year yield. ♪
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>> i am adam shapiro with your fox business brief. consumer sentiment fell earlier this month to its lowest level
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since august. dr horton and jefferies are joining a chorus of u.s. companies hoping to save shareholders from the hefty taxes in 2013. accelerating the payment of all quarterly dividend that would have been paid next year. jefferies approved $0.7.05 a share to december 31. the videogame industry suffered another sales slump in november despite the release of high-profile installment in the call of duty and halo franchises. overall sales were down 11% from the same time last year. that is the latest from the fox business network. giving you the power to prosper. ♪ [ male announcer ] where do you turn for legal matters? at legalzoom, we've created a better place to handle your legal needs. maybe you have questions about incorporating a business you'd like to start.
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connell: ibm decides to hold a match before the end of the year. daaen: good for the company. allows them to hold onto the money for longer. save on administrative costs. maybe get people out the door before they make the match. connell: the disadvantage would be for that employee. dagen: kelly green wrote all about it. she gets the credit today in the "wall street journal." she is here today. this is a huge move. >> even if you do not work for ibm, if you are in a 401(k) plan and you have a company in the middle of a big, huge, cost-cutting kind of push, this is something a lot of companies are looking at doing. we talk with benefit consultants
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who say this is frequently on the list of ideas. it is not all terrible. it may allow a company that would keep a match that other words would not keep it at all or reduce it. connell: you'd be more worried as an employee if we are not matching and at all. that would tell you something about the financial health of the company. >> that is exactly what people think and feel. the problem is there is the average cost component, that was the miracle of compound interest is what was supposed to get us through interment. these are of god to build up gradually over time. it is a concern for financial planners looking at how things are supposed to work and encouraging people to put more things into them. dagen: if this catches on, don't you think the irs will start looking at it? >> and the labor department as
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well. both of them have the latitude to make rules that would govern exactly what companies can do in this respect. connell: ibm is a huge company, obviously. you could have a lot of layoffs or a lot of people quitting. suddenly unbalanced in the way the labor force is instructed. >> it could drive whether people decide to take retirement packages or not. the way ibm has structured it, if we retire, you still get the match. it may even be something kind of subtle in your decision-making. it just has a lot of ramifications. dagen: so many companies cut match during the financial crisis of 2008. are we back to the precrisis
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levels yet? >> it depends on who you ask. it is hard to track. there is a lot of data that shows we are not back to where we were. there are companies that a lot of companies that have fully restored it. there are others that have turned it as they have restored it. they have not done it to the previous level they had in the past. connell: terrific story. thank you for coming up and talking with us. dagen: thank you, kelly. have a great weekend. it is stocks now and every 15 minutes. nicole: a winning day here. the tech heavy nasdaq actually has a down arrow. the s&p and the dow doing well. a better than expected jobs report. we beat the street with those numbers. the dow is up 45 points and we are having a winning week on
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wall street as well. the banking index is to the upside. the drug index is pulling back. those are some of the stocks that we continue to watch here. bank of america, jpmorgan and the dow. connell: thank you. dagen: you may be able to fill up your gas tank with a smile. well, maybe. lowest levels of the year. more from tom kloza i had. connell: first, let's take a look at some of the winners on the nasdaq. ♪ can i help you?
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dagen: a recorr year for the average gas prices in this country. the holiday season brings a bit of cheer as does tom kloza when he joins us. how well are we going to go between now and the end of the year? >> we started the year at about $3.28 i have probably a 5050 or better proposition that we will and the year with the lowest price since then. that would be unique. we will give a runout last year's lows which are in the $3.20 area. dagen: this would be a record year in terms of the average price. >> yes, it is. we will average about $3.60. demand is really much poorer
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than i thought it would be. we are about a .4 billion barrels a day. down about 800,000 barrels a day from the summer. dagen: supplies of gasoline are, can we say, plentiful? >> that is the odd thing. it goes from being scarce to being surplus. we have seen not on the west coast where prices are about a dollar 75 lower in the wholesale market than they were on the first couple days in october. dagen: that is incredible. do we still need to worry, however, about diesel and heating oil? >> i think we do. we are getting a price break on them right now thanks to the wharf start of the winter and a couple refineries coming on screen geared if there is a spike, it will be on heating oil and diesel. especially on the east coast.
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dagen: what about next year? >> i think we may even be close to three dollars for the beginning of the year. i think it will be a cheaper gear next year and i think, if i had to put the over under on it, it will be more like 2010 and 2011 or 2012. that could change with mideast policy very quickly. dagen: well, i hope we talk to you before the end of the year. that is all i have to say. >> i will be sloppy drunk at the end of the year, so you better get me before then. dagen: no, we would love to have you on the show sloppy drunk. thank you very much, tom kloza. he clearly does not know us at all. connell: that is why we want to have the him on. to d.c. now.
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nothing to report. dagen: we heard from house speaker john boehner. they just cannot get their acts together in d.c. rich: no they cannot. john boehner just made remarks addressing reporters in the capital. he opened his remarks warning he was not offering a progress report because there is no progress to report. democrats and republicans are still stuck on ways to raise taxes. even if they did the tax hike, federal posit budget still has a very expensive problem. >> understand that we will continue to see trillion dollar deficits for as far as the eye can see. washington has a spending problem, not a revenue problem. rich: even with a trillion dollars in spending cuts, the
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forecast spending to increase. nearly 3.6 trillion in 2014, 4 trillion by 2016 and 5 trillion by 2021. mostly due to increases in health-care spending in medicare and medicaid. the white house has $600 billion in various cuts and fee increases on the table. house republicans are offering 1.4 trillion in kosovo or spending increases. democrats argue cutting spending to quickly will further hit the economy. connell: we love when you go all congressional jargon on us. rich edson.
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[talking over each other] connell: he was on top of things. dagen: holy segments, batman. how much would you pay to own the original batmobile? i just read what they write. not really, but i did it that time. connell: our very own key crusaders dennis and cheryl are coming up. it is that time. we will be right back. ♪ switchgrass in argentina, change engineering in dubai, aluminum production in south africa, and the aerospace industry in the u.s.? at t. rowe price, we understand the connections of a complex, global economy. it's just one reason over 75% of our mutual funds
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beat their 10-year lipper average. t. rowe price. invest with confidence. request a prospectus or summary prospectus with investment information, risks, fees and expenses to read and consider carefully before investing. every human being is unique. and there is one store that recognizes it. the sleep nuertore. the only place in the world you'll find the extraordinarily comfortable sleep number experience. an exclusive collection of innovations that totally individualize your sleep.
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perfectly comfortable pillows that adjust to your size and shape. temperature-balancing bedding. dual warmth comforters. all designed around the sleep number bed: a bed with dual-air technology that allows you todjust to the support your bo needs. each of your bodie in the name of human individuality: the sleep number collection. discover how our sleep professionals can exclusively at one of our 400 sleep number stores nationwide. sleep number. comfort individualized. this holiday season, give the gift that's magical: the innovative airfit adjustable pillow at special 30% savings. i took my son fishing every year. we had great spot, not easy to find, but worth it. but with copd making it hard to breathe, i thought those days might be over. so my doctor prescribed symbicort. it helps significantly improve my lung function starting within five minutes. symbicort doesn't replace a rescue inhaler for sudden symptoms. with symbicort, today i'm breathing better.
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and that means...fish on! symbicort is for copd including chronic bnchitis and emphysema. it should not be taken more an twi a day. symbirt may increase your risk of lung infections, osteoporosis, d some eye problems. tell your doctor if you have a heart condition or high blood pssure before taking it. with copd, i thought i'd miss our family tradition. now symbicort significantly improves my lung function, starting within 5 minutes. and that makes a diffence in my breathing. today, we're ready for whatever swims our way. ask your doctor about symbicort. i got my first prescription free. or click to learn more. [ male announcer ] if you can't afford your medication, astrazeneca may be able thelp. dennis: i am dennis kneale. cheryl: i am cheryl casone. a hot and cold reaction from wall street after the november jobs report which beat even the highest forecasts but the devil
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is in the details. dennis: good for stockholders but ibm employees are in the big blue over a big change in their 401(k) plan. is your company's plan next? cheryl: only car auctions, they're auctioning off the iconic car, the original bat mobile live from los angeles. dennis: that will be fun. the guy who designed it and the guy who is going to be selling it. keep it right here on this channel. [talking over each other] cheryl: is going to be a long hour. dennis: top of the our stocks every 15 minutes and nicole petallides on the new york stock exchange. good employment numbers. the dow miley reacting. nicole: looking good in those masks. the dow is up 20 points and that accounts for 1/4%. the nasdaq and the s&p are both in the red. the nasdaq has been in the red for some time. the s&p just slipped back into the red. that is what it was before the
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jobs report. before the jobs report came out the market was leaning to the downside and once the jobs numbers came in and were better than expected for the prior month we saw the markets turn into the green so we are still positive for the week. let's take a look at apple. apple is the name we watched so closely. we have seen it selling off. it is down 20% since the highs we saw in september. but you do have goldman sachs talking about avalanche basically they can continue to battle against google, the market share that some people have been speculating apple was likely to lose. cheryl: that is a stock to watch for the week and today we will see you in 14 minutes. just talking about the november unemployment rate, dropping 7.7%. 6,000 new jobs added. far better than expectations but behind that number is the fiscal cliff. if congress doesn't act jobless unemployment benefits will go from a 72 week maximum down to
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27 weeks. could that force a spike in the jobless rate again for 2013? joining us is todd schoenberger of wells fargo, senior economist. i know you were not thrilled with the numbers that came out today but you also have the issue of unemployment benefits and what that does to the economy. are you worried? >> you bet i am worried. if we leap off of the fiscal cliff you are looking at a minimum of 500,000 jobs eliminated and i am not talking low-wage jobs. i am talking about high five digit to six digit jobs. that will impact the overall economy. not just in the united states, also the global economy. you have to start looking at multinationals that trade on wall street. cheryl: some on the democratic side say they want to see unemployment extended for 200013. they argue it will hurt the economy if we don't extend unemployment. do you agree with that
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assumption? >> i don't think that is true. extended unemployment benefits have been winding down on a state-by-state basis for some time. it doesn't seem to be hurting the economy. i don't see how they will be able to extend the. not they're going to come close to coming to some sort of agreement on the fiscal cliff. we can't increase spending. we are trying to rein it in and i am not that worried. there are distributional effects. lot of the lower end retailers, dollars or, drug stores have been big beneficiaries on extended unemployment benefits and their business will likely slow. cheryl: let me ask you something. you brought up the issue of the amount of retail dobbs but those are low-wage jobs. i assume the market does not want to see that. nice to see jobs added but not the right type of jobs. >> that is right. 50% of the jobs that were part of today's report of the low-income variety jobs. hospitality, leisure, retail, temporary jobs. we don't want to see that on
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wall street. we want to see the high-wage jobs because those are the jobs that will sustain a growing economy. they will be able to buy big-ticket items such as cars, a house, durable-goods. that is what you need to really grow this economy and right now we haven't heard any strategy of washington. all we're hearing about are extra taxes. cheryl: i want you to listen to this and react on the other side. house speaker john boehner an hour ago was asked about a phone conversation yesterday with the president regarding the cliff and here is what he said. >> the phone call was pleasant but more of the same. the conversations staff had yesterday, more of the same. it is time for the president to be serious, back with a counteroffer. cheryl: we are nowhere near the fiscal cliff, pretty obvious now. what does that say to you? >> there's an awful lot of uncertainty in the economy. we do a survey of small businesses.
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wells fargo, we contract out and in the fourth quarter our small business fell 28 points. the biggest drop in four years. not so much that businesses are worried about the economy today. the conditions are normal, somewhere between normal and that. what is disconcerting is what they say about the future, really falling off and much more worried about future revenue growth and also worried how it is going to impact the cash flow, worried about the cost of regulation and many are putting off hiring and investment decisions and collectively that takes a huge toll on the economy did cheryl: you have the labour participation rate, that is also an economic issue separate from the fiscal cliff debate but 229,000 people not looking for work, fewer looking for work in the month of november. the giving up factories huge year. >> it is huge and has social implications. right now you have zero
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confidence from any of the consumers and anybody out of work, plus you start looking at the top, talking about the extended unemployment benefits. if you lose your job, think of those citibank employees, 11,000 of them. if they lose their jobs, the majority of them won't find work until 2014. it is horribly demoralizing right now. going forward if you do leap off of this cliff which i believe we will, you have to suspect you will have less confidence in the market, not just globally but obviously domestically and right now washington isn't saying anything with anything on job crration. cheryl: always nice to listen to them to say nothing in news conferences. todd schoenberger, thank you very much. appreciate it. dennis: generating jobs and profits from the devastation caused by hurricane sandwich. cheryl: hiring at one company has spiked because of the superstorm. jeff flock joining us from wisconsin with more. jeff: i have a unique ceo who is
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concerned about the fiscal cliff but at the same time is hiring like it is going out of style. the ceo of generous. look at what is coming off of the line. that is one of your own power units. it has become so much in demand because of sandy. >> these are products that have only been around ten years. only a 2.5% of u.s. households a huge opportunity for markets. jeff: you have hired 200 people additionally since sandy. >> we are bringing them on and running three ships in this facility today in response. jeff: look at the stock and walked me out here. i will see as much of this facility as i can, a 3,000 square foot facility. bird stock. you have doubled in value as a result of the hurricane. >> we did. people have started to understand the importance of backup power, with you are a homeowner or a business owner. >> this is the wind turned out backup power. this unit right here, let me take a look, people have said i don't want to be out of power
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every time there's a storm. they are installing these at a cost of $2,000. >> starting price is $2,000. you have to have it installed and go as high as $5,000 that they and power everything from critical things in your home to the whole house. jeff: this market is undeveloped. what percentage of people have these generation capabilities in the u.s.? >> 2.5% of houses. 1% penetration divided $2 billion market share, market opportunity. jeff: i look at people, you hired 200 additional people. you are concerned about this fiscal cliff. what impact would it have on your business? >> it could dampen demand for product. we worry about the fiscal cliff but at the same time people are more worried about our quality in the u.s. and that helps demand for our product. jeff: this company went public in 2010, stock price $13, recently got up to 40. price targets are above that on it. take a look at that.
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cheryl: charles payne was right. jeff flock, thank you very much. ibm employees saying the big blue after the company says it is not paying 401(k) matches until the end of the year. dennis: holy jalopy, batman. these are live pictures of the backmobile from the 1960s tv series. we will speak to the designer and the auctioneer who will put this baby on the block. how much will go for? [ male announcer ] where do you turn for legal matters?
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cheryl: ibm employees singing big blues of working in a 401(k) plan, is your company's plan going to be next? dennis: charles payne joins us next. bad news for employees that is good news for keeping costs down. charles: companies that like to retain talent, here is the thing. people contribute to their retirement accounts defying pension plans and companies match, ibm is saying we will wait until december 31st. we will not keep matching and putting money in and at any point in the year, and --
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dennis: without the payment. charles: unless it is retirement. you're not going to match. cheryl: you miss the revenues of the year. extra cash, personal until the end of the year. charles: it is a match dollar for dollar but a lot of companies match stock. it goes to $98. there are some disadvantages without a doubt which is why the company is doing it. a greater narrative for me is the s&p 500 right now, those companies, $355 billion in the hole, pension liabilities. people don't realize earlier this year the transportation bill there was a change made to the way companies can account for what they have with assets. they can assume the debt bond yield going back to 15 year average. companies are not going to be less money into these. there was a time before this whole fiscal crisis, before the great recession when the biggest
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worry on wall street were corporate unfunded pension liabilities. it is a gigantic problem. dennis: they have got to be something. doesn't get your benefits unless the end of choosing on your own to leave the company before december each year. save money because the company is holding on to the money all year long and investing it instead of paying it out gradually and you save money when people leave without it new jobs and living to go without it and make my new employer make it up to me. charles: good for the company's shareholders and the person is thinking about leaving it makes him or her think twice. the bigger issue, these companies because they make these assumptions are made these assumptions and the stock market there so far behind and they are upside-down. their 48% bonds were these to be 65% stocks and twisted around chasing performance. what if the stock
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rallies? [talking over each other] dennis: it is 15 past the hour. let's go to stocks every 15 minutes. cheryl: phil flynn in the trading pits of the cme but nicole petallides on the floor of the stock exchange. nicole: take a look at the dow right now. we are up 35 points but the nasdaq and the s&p 500 are lower. the dow is managing to hold on. don't forget the dow only has 30 dow component in it and some of the winners are j.p. -- jpmorgan, caterpillar, walmart, bank of america, those are the names that keeping the dow a flow. the tech heavy nasdaq and the s&p 500 when you look at those stocks are lower. the market breadth has dwindled. there were more up stocks than down stocks. we are still seeing that, but it is tying up a little bit. that is why we are seeing this action. the fear index to the downside. phil flynn, what you seeing?
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jeff: metal all over the place. metals traders don't know how to take it much better than expected employment report. this morning. initially we saw gold and silver selling off into the number as the dollar rallied and bonds really took a tank and people said the u.s. is doing good but europe is not doing very good and we are concerned about that so what you saw is a shift in the marketplace. the u.s. is the place to be. kris cox little bit, rest on, but middle-class coming back. four of them expected, consumer confidence number of big drop in december. that took that awful little bit but if you look at the technical, they went below the 100 day moving average and hanging above it and back above it. the traders say maybe of the market doesn't break we could make another good move to the upside. this number there, the other metal is copper. copper has been the one metal that has been staying very strong. a lot of hope for a chinese demand on top of more stimulus
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in china. supply deficit on that market and it sure helps to see the good jobs number. that was another supportive situation. when it comes to the copper market, we are again today. one of the strongest metals in the metal complex, the copper market. that is a good sign for economic growth down road. back to you, cheryl casone and dennis kneale. cheryl: thanks to both of you. breaking news into fox business. want to show you once again live pictures out of cairo, egypt. reuters is reporting protesters have breached a military barricade. that barricade is protecting the presidential palace. the protesters are upset about the president's decree giving him almost unquestioned power over his government but reuters reporting the barrier has been broken. they tried two days ago and were unsuccessful. those protesters have had success. we will keep you posted. fiscal cliff survival kit looking for a save haven, munis, maybe the way to go.
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we will do you y. dennis: employees of random house in for a lot of green, 50 shades of gray. how the world's currencies are faring against our own green u.s. dollar.
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>> 22 minutes past the hour, this is your fox news minute. japanese authorities telling the united nations the atomic agency, no problems have been detected at a nuclear plant near the epicenter of that 7.3 magnitude earthquake that rocked the country today. the quake triggered one meter tsunami in the area near fukushima but officials say there is no risk of widespread tsunami. syrian rebel groups electing a 30 member unified command during a meeting with international security officials. this is violence raging in the fourth -- nation and fears the assad regime could use chemical weapons. hillary clinton saying today the future of syria cannot possibly include assad. in the netherlands sending
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patriot missiles to turkey aimed at protecting the neo member against possible syrian attack. maximum of 360 personnel will accompany two surface-to-air missile batteries. those are your headlines in the fox business network. get you back to dennis kneale. dennis: thank you. fiscal cliff survival kit, looking for a safe investment, muni bonds may be the way to go. so says the chief executive officer of front stone capital management who joins us from chicago. thanks for being with us. you like these munis even though you're the we ritter 5 there would be all kinds of defaults across the landscape. >> this is one of my favorite topics because we at bob brooks stone capital management have been very bullish in the 2008 crisis. it produced some stellar total return for our clients that include the interest on a tax rebate and appreciation. dennis: would you prefer that i as your client buy an entire
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bond or maybe ought to buy a basket in an e t f or something. >> without a doubt. the opportunity we have seen through actively managed mutual funds. what happened in 2008 was indiscriminate selling across the entire sector. it created a miss pricing in many of the bonds and a lot of these mass and -- managers were able to take advantage of that. in terms of bikers of vacation and getting access to literally thousands of bonds, a much better plan to actively -- actively managed funds and take individual bonds for your portfolio. dennis: you probably run one of those and get good fees on its though that is totally fine. when i do this i am going to buy bond. and by buying it to hold onto until maturity or am i buying it so i conflict and selling when it goes up in price? >> with funds there is no maturity. you're buying a basket of bonds that are actively managed. for the most part it has been a tactical income play to take
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advantage of -- we saw miss pricing in the sector. what happened is yields were north of 5% or 6% and those yields have come down. it has been a reversion to the mean type play and pricing of those bonds got more in line with what they ought to have been priced at closer to par value. as your yields of come down the price of your funds of the on higher. that created a perfect storm of total return that included a high amount of current interest, tax free as well as appreciation. dennis: you also like bonds, tobacco and tollways. thank you for being with us. good weekend to you. cheryl: get this one. poker stars looking to move from on line to on the boardwalk. the poker sign is discussing a deal to buy the atlantic club casino in atlantic city. a person familiar with the plan to the purchase price being negotiated has less than
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$50 million four months after poker stars paid $731 million in a settlement with the justice department accusing the company of bank fraud, money laundering, illegal gambling, like boardwalk empires. dennis: interesting points. many people thought his company was that after paying $700 million to the government but by its archrival that also was hit by government and in new jersey there's a bill to let online gambling be legal the leader new jersey residents and they're betting on the future it will spread. cheryl: we're seeing an incredible move and this will make it federally legal, online gambling, especially poker. and you can benefit from that. buying a casino in atlantic city, we will see what happens. dennis: more fiscal cliff rhetoric from house speaker john boehner and president obama. when are they going to get serious? cheryl: look at live pictures of the original backmobile. we will have the designer and a man who will auction this baby off. dennis: look at today's s&p
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dennis: 30 minutes past the hour. we have nicole cut -- nicole petallides. nicole: companies looking very close. they have been selling assets in
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order to pay back the $182 billion from that allow back in 2008. here is the story. this unit has been possibly going to go public. the ceo of aig has been waiting for the markets to improve. the talks are reasonably far along. getting a nice pop here. of 61.30. cheryl: it is all good. nicole petallides. thank you very much. better than expected jobs numbers released this morning.
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it is because investors are far more worried about the fiscal cliff. first of all, i want to start with the jobs number. the futures were down, market pop up. >> you have some discrepancies in the way the numbers are being reported. you had a better headline number. the new book that what has been impacted by sandy. there is some conflicting information coming out. cheryl: we start to look at the data you get into the data better. if you have 7.7 unemployment rate, it fell because people dropped out of the labor force. were they cleaning up basement somewhere in the northeast, where they hoping volunteer? >> or could they just not get to whereethey needed to go.
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this is so important. look at the trend line. job creation has been around 150,000. the labor participation rate continues to drop. that has been a big concern. cheryl: 369,000 said yes to being out to work because of the weather. there is a lot of anxiety about our investment as we get towards the end of the month. >> it is all about financial strength and strong balance sheets. the economy continues to chug along and approve slowly. but slowly we are being weighed down by the fiscal cliff. cheryl: that means a new year's eve selloff. >> you will not time it if you
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are an investor. focus on companies that have strong balance sheets, pay a good dividend and have strong growth rates. five more of your favorite names on market selloff when you have more opportunity. cheryl: pier one is a risky play. >> the consensus estimate is for growth rate over the next five years. they seem to have finally fixed their project mix. i go with what my wife and friends do and they like to go back into pier one to shop now. cheryl: i haven't been to one in years, i better go check it out. thank you very much. dennis, over to you. dennis: d has an app for that. it could cost them a lot of money.
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do not change the channel. up next, the batmobile. how much would you bid? take a look at tenure treasuries first. ♪ [ male announcer ] this is amy. amy likes to invest in the market. she also likes to ride her bike. she knows the potential for making or losing money can pop up anytime. that's why she trades with the leader in mobile trading. so she's always ready to take action, no matter how wily... or weird... or wonderfully the market's behaving... which isn't rocket science. it's just common sense. from td ameritrade.
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its 2013 sudan's in the u.s. to replace faulty headlamps. the fusion and escape were recalled last year for a potential defect that could cause engine fire. credit card debt continues to be a top worry. many people are just simply using them less. many people plan to charge less than $500 this holiday season. that is the latest from the fox business network. giving you the power to prosper. ♪ can restore testosterone levels back to normal in most men. axiron is not for use in women or anyone younger than 18. axiron can transfer to others through direct contact. women, especially the who are or who may become pregnant, and children should avoid contact where axiron is applied as unexpected signs of puberty in children or changes in body hair or increased acne in women may occur. report these signs and symptoms to your doctor if they occur.
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this car from ford and you acquired it what you are and how much did you pay for it? >> 1966 and i paid one dollar for the car. dennis: you paid one dollar for the car. it could be auctioned off for several million dollars. the james bond car went for 5 million. are you hoping to get more than that? >> we think that this car is way more important than james bond car because it was enjoyed by millions of people. dennis: what is the model, about three or 4 miles per gallon? >> we did not check that yet. maybe sometimes we will have to use electricity. dennis: how much design did you out to the car? what did you do to it actually? >> i had to change the offenders. change the front and. add to that fence.
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add rocket tubes. we made it a star. we made it act. dennis: what do you think of the newer batmobile and that that motorcycle? >> they are enjoyable. i felt my vehicle was more of a people car. we were there to make people happy and make it enjoyable and entertaining. dennis: that is one of the sweetest things i have heard and an interview this week. you just heard your client take he is hoping four bids north of 5 million. are you going to get them? >> it takes two people at an auction.
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we have a history of setting world records. we are the biggest auction in the world. it has been around for 42 years. we have a history of selling significant cars like the batmobile. i do not think it is out of reality that this car will bring potable millions of dollars. there are people around the world that can identify with the batmobile. it is not just the u.s. it is an iconic vehicle. it should go to a museum. dennis: will it be car buffs or batman fans that will be bigger bidders? >> i think it will be a combination thereof. i am hoping that it goes to a museum or people can view this
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vehicle. hopefully it will be somewhere we can all go and see it. dennis: thank you very much for being with us. good luck with that auction. i hope you make lots of money. >> thank you. january 19 it goes up for sale. >> we will make people happy all over the world. cheryl: we will be following it. absolutely. dennis: the idea that his cart made people happy, i remember watching that as a kid. cheryl: he must have so many stories from back in the day. at that time, it was so futuristic. the new car and helicopter and everything else is so futuristic. let's go to u.s. coast in it which has a lot of california in it today. the attorney general is suing delta airlines for its mobile app. the first ever legal move under
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the privacy act. the airlines now have mobile apps for travelers. delta is putting sensitive consumer information at risk. they face a fine of up to $2500 for each violation. take a look at this. dense fog is late getting l.a. during rush hour this morning. drivers are advised to slow down and take it easy, which is tough to do when you are driving on the freeway in california. a beach whale carcass is causing a stink, literally. people are struggling with how to rebuild the 40,000-pound carcass. one of the reasons it is still there is because there is a dispute over who is responsible for moving it.
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that is northwest coast minute. those poor people out in malibu. dennis: california just seems bent on driving as much business out of the state as they possibly can. they just keep passing more and more regulation. cheryl: it is a money grab. they are desperate. i have never seen a state so mismanaged. dennis: it is just a hassle factor. filming in that state is just awful. cheryl: i am sad about the whale. they think he got hit by a ship. i want to clarify the story. it is quarter to the hour.
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nicole: let's see how stocks are faring. we have some news on that now. they reached 120 yen dollar settlement. there were some issues pertaining to reimbursement. they were accused of underpaying some of the network claims. they have agreed to pay $60 billion, plus up to 60 milllon more. it is good to have some clarity. the stock is up nearly 2% on this news. take a look at the broader market averages. the tech heavy nasdaq has been in the red all day. back to you. cheryl: see you at the top of the hour. the u.s. department of energy releasing a study that could influence president obama's decision to grant approval for
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companies to build export centers. >> it is okay, in terms of employment, because there are $90 billion of projects in the books right now. it ignores the manufacturing sector. enron takes the report and puts it in motion. we will see a catastrophic disruption of jobs in this country. cheryl: joining me for the rest of liz's interview on "countdown to the closing bell." employees of random house are in for a lot of green thanks to "50
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dennis: time for your media minute. netflix about to get slapped for violating full disclosure rules. netflix ran this post on facebook. casually revealing that viewing was up to a billion hours a
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month without issuing a filing. then reed hastings reported that number in a post in july. hastings said it reaches 200,000 people including media and it was not a material disclosure anyway. hollywood is holding fire and waiting for next week's premiere of "the hobbit." 5000 shades of green, random house is getting rich on "50 shades of gray." it is now sharing its wealth with each employee. $5000 each. cheryl: that trilogy has gone insane. it really is amazing. it is the trash that keeps on giving.
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the numbers are real and the popularity is real. dennis: 65 million copies world wide. cheryl: i cannot wait to see who they pick to play the characters in the movie. if we end up going over the fiscal cliff at the end of the year or not, the federal government will still be spending trillions. dennis: rich edson is in washington, d.c. rich: part of it is an spending cuts over the next decade. even with those cuts in place. they forecast federal spending to increase each year over the next decade. as for plans to contain
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spending, the white house has various cuts and fee increases on the table. house republicans are offering 4.1 million lower cuts and increases. even if these cuts failed to control the greatest deficit challenge, the spending on federal health care programs like medicare. >> the path has been clear for a decade now. every director comes to the same conclusion. you cannot roll your way out of it. you must change these programs. >> president obama is pushing billions in new spending to spur the economy. back to you. cheryl: rich, thank you very much. dennis: merry christmas and happy hanukkah. six major banks announcing they will halt -- wells fargo, bank
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of america, citigroup, they say they will suspend foreclosure activity until the new year healthy defaulting borrowers remain in their home for the holidays. fannie mae and freddie mac, does governor god, were the first to announce this. these banks following suit. cheryl: they could go in there and get the foreclosures done now. they are waiting until the next year. dennis: it is probably good for their image business to do this. i like that rather than regulations forcing them to do things. cheryl: we are seeing a lot of short sales in the market. the home of the u.s. auto industry is shifting to a -- dennis: that is an incredible story. michigan's blow to the organized labor movement.
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adam shapiro and melissa francis are up next. ♪
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special 30% savings. dennis: aig, four years after that horrible meltdown will sell off a price asset. it refused to sell it during the time of crisis. now they are selling it to the chinese. one of the very first american companies allowed into china. cheryl: that is one stock that nicole will be following through the next hour. there are hits and misses in this. adam shapiro and melissa francis will take you through the next hour. melissa: you are not lori rothman? adam: and adam shapiro and four lori rothman's piece on

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